Overview
- President Trump said large U.S. oil companies will spend billions to repair Venezuela’s “badly broken” oil infrastructure, be reimbursed from future oil revenues, and operate as Washington oversees a transition.
- Chevron remains the only major U.S. operator in the country under license, while ExxonMobil and ConocoPhillips have not committed to returning after past expropriations and unresolved claims.
- Venezuela holds roughly 300 billion barrels of proven reserves, about 17% of the global total, yet output has fallen to around 1 million barrels per day after years of mismanagement and sanctions.
- Most exports are heavy, sour crude suited to U.S. Gulf Coast refineries, but existing embargoes, legal hurdles, and degraded facilities limit prospects for a quick increase in supply.
- China, the primary buyer of Venezuelan oil through loan‑repayment shipments, condemned the U.S. action as experts caution that any meaningful production recovery will be slow.